BWIA wants co-operation, not single regional carrier

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BWIA wants co-operation, not single regional carrier
Guardian

Some Caricom Governments may have re-energised their call for a single
regional airline, but BWIA has applied the brakes on the idea. "I don't
think it is a practical solution at this time," said BWIA chief executive
officer Conrad Aleong on Monday. "We think functional co-operation,
functional integration, rather than a merger of companies is the right way
to go." Aleong was speaking to reporters after a BWIA press conference with
International Air Transportation Association Director General Giovanni
Bisignani.  As a condition of the State's US $13.5 million loan to the
airline, BWIA must allow consultants to advise it on an appropriate
operational structure including the concept of a regional
carrier.  Bisignani said mergers are not always the way to go. "You know
the worst thing is when you say let's merge. One disappears, the other
remains there." Consolidation, he said, was a better solution. This would
involve a system where each airline runs a different aspect of the
operations of its partners.

Aleong noted the consolidation concept is not foreign to the Caribbean.
"Maybe all the carriers can put in one maintenance company and then do all
the maintenance for all the carriers. We considered an accounting company
for all the accounting for all the airlines." Aleong denied reports that
Air Jamaica chairman Butch Stewart did not want to co-operate with BWIA and
Liat. "I think what Butch is against and probably the Jamaican government
as well," he said, "is the integration of the two carriers into a merger
like a financial merger." The Government has expressed its desire for one
Caribbean carrier.  Last November, Transport Minister Franklyn Khan said
Caribbean governments can no longer continue to provide State funds for
struggling regional airlines and stressed, "Our goal of a single regional
carrier must become a reality."

BWIA, Liat and Air Jamaica have all been losing money since the terrorist
attacks in the United States on September 11, 2001.  All three are partly
funded by various Caribbean Governments.  "When you start losing money,"
Aleong said, "and go on losing money, at a certain point you will find no
Government that will be able to fund those amounts of money forever if it's
not for an emergency."  The airlines, said Bisignani, must begin coming up
with their own ideas for self-sufficiency and success. Aleong did not
totally shoot down the single regional carrier concept but said what is
more likely to occur in the immediate future is a the kind of partnership
BWIA has with Liat. "We do reservations handling for Liat, which has saved
Liat a lot of costs, because you pay people in TT dollars to have the calls
where you were paying them in EC dollars," Aleong said. BWIA has a 29 per
cent share interest in Liat.

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